6. the interest rate on a convertible debt is usually _______ the interest rate on a nonconvertible debt

d. stated rate

e. coupon rate

f. nominal rate

7. Which of the following are altermatives names for the coupon rate of interest? SELECT ALL THAT APPLY

a. nominal rate

b. market rate

c. stated rate

d. face rate

e. contract rate

f. yield

8.The amount of periodic interest paid on a bond issue is determined by:

a.the coupon rate

b. the market rate

c. both the coupon rate and the market rate

d. neither the coupon rate nor the market rate

9. Which of the following is NOT true when the effective rate of interest is less than the stated rate of interest?

a. the cash interest paid will be less than the interest expense

b. the debt will be issued at a premium

c. the cash proceeds of the note will be greater than the face value

d. the cash paid at the maturity date will be equal to the face value

10. A long term debt instrument for which real estate is pledged as collateral is known as an ______ _